Scenario: You and a friend get an apartment together. To help share expenses on large items, your roommate will be purchasing a used car for the two
of you to share, and you will be purchasing new living and dining room furniture. The furniture store will only sell the furniture to you if you sign up for
their Synchrony Credit Card. You purchase the furniture for $5000.00, at 29% APR.
You earn $1800.00 per month, $400.00 of which you can put toward paying off the furniture bill. This means that you could pay off the furniture in
13 months...but not exactly, because your carryover balances will accumulate interest.
Two weeks after making this purchase, you get an offer in the mail for a Capital One Credit Card. On the envelope and throughout the letter, Capital One
entices you to sign up with their card because they will offer you 0% interest for 18 months on purchases and balance transfers. The balance transfer
fee is 3% of the amount being transferred.
Your assignment is to determine which is the better financial move, and to support your answer with math: